diff --git a/tools/spectral/ipa/__tests__/IPA114ParameterizedPathsHave404NotFound.test.js b/tools/spectral/ipa/__tests__/IPA114ParameterizedPathsHave404NotFound.test.js
new file mode 100644
index 0000000000..64ba69243b
--- /dev/null
+++ b/tools/spectral/ipa/__tests__/IPA114ParameterizedPathsHave404NotFound.test.js
@@ -0,0 +1,110 @@
+import testRule from './__helpers__/testRule.js';
+import { DiagnosticSeverity } from '@stoplight/types';
+
+testRule('xgen-IPA-114-parameterized-paths-have-404-not-found', [
+  {
+    name: 'valid parameterized path with 404 response',
+    document: {
+      paths: {
+        '/resources/{resourceId}': {
+          get: {
+            responses: {
+              200: { description: 'Success' },
+              404: { description: 'Not Found' },
+            },
+          },
+        },
+      },
+    },
+    errors: [],
+  },
+  {
+    name: 'invalid parameterized path missing 404 response',
+    document: {
+      paths: {
+        '/resources/{resourceId}': {
+          get: {
+            responses: {
+              200: { description: 'Success' },
+            },
+          },
+        },
+      },
+    },
+    errors: [
+      {
+        code: 'xgen-IPA-114-parameterized-paths-have-404-not-found',
+        message: 'Parameterized path must define a 404 response.',
+        path: ['paths', '/resources/{resourceId}', 'get'],
+        severity: DiagnosticSeverity.Warning,
+      },
+    ],
+  },
+  {
+    name: 'non-parameterized path without 404 response (valid)',
+    document: {
+      paths: {
+        '/resources': {
+          get: {
+            responses: {
+              200: { description: 'Success' },
+            },
+          },
+        },
+      },
+    },
+    errors: [],
+  },
+  {
+    name: 'parameterized path with multiple parameters and 404 response',
+    document: {
+      paths: {
+        '/resources/{resourceId}/items/{itemId}': {
+          get: {
+            responses: {
+              200: { description: 'Success' },
+              404: { description: 'Not Found' },
+            },
+          },
+        },
+      },
+    },
+    errors: [],
+  },
+  {
+    name: 'no responses',
+    document: {
+      paths: {
+        '/resources/{resourceId}': {
+          get: {},
+        },
+      },
+    },
+    errors: [
+      {
+        code: 'xgen-IPA-114-parameterized-paths-have-404-not-found',
+        message: 'Parameterized path must define a 404 response.',
+        path: ['paths', '/resources/{resourceId}', 'get'],
+        severity: DiagnosticSeverity.Warning,
+      },
+    ],
+  },
+  {
+    name: 'with exception',
+    document: {
+      paths: {
+        '/resources/{resourceId}': {
+          get: {
+            'x-xgen-IPA-exception': {
+              'xgen-IPA-114-parameterized-paths-have-404-not-found': 'Reason',
+            },
+            responses: {
+              200: { description: 'Success' },
+            },
+          },
+        },
+      },
+    },
+    errors: [],
+  },
+]);
diff --git a/tools/spectral/ipa/rulesets/IPA-114.yaml b/tools/spectral/ipa/rulesets/IPA-114.yaml
index fe630188a6..672d2910b9 100644
--- a/tools/spectral/ipa/rulesets/IPA-114.yaml
+++ b/tools/spectral/ipa/rulesets/IPA-114.yaml
@@ -5,6 +5,7 @@ functions:
   - IPA114ErrorResponsesReferToApiError
   - IPA114ApiErrorHasBadRequestDetail
   - IPA114AuthenticatedEndpointsHaveAuthErrors
+  - IPA114ParameterizedPathsHave404NotFound
 
 rules:
   xgen-IPA-114-error-responses-refer-to-api-error:
@@ -45,3 +46,16 @@ rules:
     given: '$.paths[*][get,put,post,delete,options,head,patch,trace]'
     then:
       function: 'IPA114AuthenticatedEndpointsHaveAuthErrors'
+  xgen-IPA-114-parameterized-paths-have-404-not-found:
+    description: |
+      Paths with parameters must define 404 responses.
+
+      ##### Implementation details
+      This rule checks that all endpoints with path parameters (identified by '{param}' 
+      in the path) include a 404 response to handle the case when the requested resource
+      is not found.
+    message: '{{error}} https://mdb.link/mongodb-atlas-openapi-validation#xgen-IPA-114-parameterized-paths-have-not-found'
+    severity: warn
+    given: '$.paths[*][get,put,post,delete,options,head,patch,trace]'
+    then:
+      function: 'IPA114ParameterizedPathsHave404NotFound'
diff --git a/tools/spectral/ipa/rulesets/README.md b/tools/spectral/ipa/rulesets/README.md
index 550d7f2c4d..3d4a49e599 100644
--- a/tools/spectral/ipa/rulesets/README.md
+++ b/tools/spectral/ipa/rulesets/README.md
@@ -636,6 +636,16 @@ Authenticated endpoints must define 401 and 403 responses.
 This rule checks that all authenticated endpoints (those without explicit 'security: []' 
 and not containing '/unauth' in the path) include 401 and 403 responses.
 
+#### xgen-IPA-114-parameterized-paths-have-404-not-found
+
+ ![warn](https://img.shields.io/badge/warning-yellow) 
+Paths with parameters must define 404 responses.
+
+##### Implementation details
+This rule checks that all endpoints with path parameters (identified by '{param}' 
+in the path) include a 404 response to handle the case when the requested resource
+is not found.
+
 
 
 ### IPA-117
diff --git a/tools/spectral/ipa/rulesets/functions/IPA114ParameterizedPathsHave404NotFound.js b/tools/spectral/ipa/rulesets/functions/IPA114ParameterizedPathsHave404NotFound.js
new file mode 100644
index 0000000000..da92f7ad9f
--- /dev/null
+++ b/tools/spectral/ipa/rulesets/functions/IPA114ParameterizedPathsHave404NotFound.js
@@ -0,0 +1,73 @@
+import { hasException } from './utils/exceptions.js';
+import {
+  collectAdoption,
+  collectAndReturnViolation,
+  collectException,
+  handleInternalError,
+} from './utils/collectionUtils.js';
+
+const RULE_NAME = 'xgen-IPA-114-parameterized-paths-have-404-not-found';
+const ERROR_MESSAGE = `Parameterized path must define a 404 response.`;
+/**
+ * Validates that paths with parameters include a 404 response
+ *
+ * @param {object} input - The operation object to check
+ * @param {object} _ - Rule options (unused)
+ * @param {object} context - The context object containing path and document information
+ */
+export default (input, _, { path }) => {
+  // Path components: [paths, pathName, methodName, ...]
+  const pathName = path[1];
+
+  const pathParamRegex = /{[^{}]+}/;
+  if (!pathParamRegex.test(pathName)) {
+    return;
+  }
+
+  // Check for exception at operation level
+  if (hasException(input, RULE_NAME)) {
+    collectException(input, RULE_NAME, path);
+    return;
+  }
+
+  const errors = checkViolationsAndReturnErrors(input.responses, path);
+  if (errors.length > 0) {
+    return collectAndReturnViolation(path, RULE_NAME, errors);
+  }
+
+  collectAdoption(path, RULE_NAME);
+};
+
+/**
+ * Check for violations in response structure
+ *
+ * @param {object} responses - The responses object to validate
+ * @param {Array} path - Path to the responses in the document
+ * @returns {Array} - Array of error objects
+ */
+function checkViolationsAndReturnErrors(responses, path) {
+  try {
+    if (!responses) {
+      return [
+        {
+          path,
+          message: ERROR_MESSAGE,
+        },
+      ];
+    }
+
+    // Check for 404 Not Found response
+    if (!responses['404']) {
+      return [
+        {
+          path,
+          message: ERROR_MESSAGE,
+        },
+      ];
+    }
+
+    return [];
+  } catch (e) {
+    handleInternalError(RULE_NAME, path, e);
+  }
+}